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New exploration at the old Victoria Mine just north of Lively is showing increasingly promising results, Quadra FNX Mining Ltd. announced Tuesday.

Since the company announced in May that it made a promising discovery at its Victoria property, Quadra FNX Mining said has drilled 11 additional holes. The deeper crews dig, the higher grades of nickel, copper and precious metals they find, the company said.

"These results continue to confirm the potential value of the Victoria project and it is fast becoming an important development asset for the company," Paul Blythe, president and CEO of Quadra FNX, said in a release.

"The results from this program have provided us with a valuable understanding of the geological controls on the sulphide mineralized system, and has put into context the character, high quality, and potential size of the deposit."

The company has six diamond drill rigs on the Victoria property and plans to spend $9 million in the second half of 2010 on the project that will help determine whether an advance exploration project is in order. The company expects to add a seventh drill to the property later in September

"While there is no assurance yet that this project is commercially viable, results to date demonstrate a deposit of some significance," Blythe said. "Our short-term objective will be to continue advancing our exploration efforts and acquire the data necessary to make an informed decision as to whether to sink an exploration shaft within the next six months."

Victoria Mines was prospected heavily in the 1880s and 1890s, and the Mond Nickel Company built a mine in 1900. A smelter was also built on the site to the north of the Canadian Pacific Railway line, and a company town that housed anywhere from 300 to 600 people during its lifetime sprang up rapidly.

In the early 1910s, Mond Nickel moved its operations to the fledgling community of Coniston, east of Sudbury. Many of the buildings of Victoria Mines were moved to Coniston via the CP Rail line, including a Presbyterian church that remains standing.

Only two buildings remain intact on the site, with the town mostly left abandoned after the mine's closure in 1913. During its lifetime, the mine produced almost 620,000 tons of ore.

Victoria Mines is the birthplace of Hockey Hall of Famer, Hector "Toe" Blake.

Quadra FNX Mining Ltd. is a leading mid-tier copper mining company with corporate offices in Vancouver, B.C., and Toronto. Quadra FNX produces copper, gold, nickel and platinum group metals from its operating mines: the Robinson mine in Nevada, the Carlota mine in Arizona, Franke mine in northern Chile, and the McCreedy West, Levack and Podolsky mines in Sudbury.

The company possesses several advanced development projects, including the Morrison Deposit in Sudbury, the Sierra Gorda copper-molybdenum project in Chile and the Malmbjerg molybdenum development project in Greenland.

Quadra FNX employs about 1,650 people in North and South America, including about 450 in Sudbury.